FX Insights

Navigating FX Risk Programs as Disinflation Tilts Forward Since early 2022, central banks have taken substantial strides through interest rate hikes to address persistent inflation developments from 2020-21. Market tone is that the global economy is nearing the conclusion of the tightening cycle, especially for major central banks, signaling potential economic stabilization. Upon closer…

So you’ve decided to hedge, but how much? By Ritwik Sarkar Mar 07, 2023 Corporates continue to face new and difficult management choices when it comes to effectively reducing FX risk because currency volatility is anticipated to be a constant in the short- and medium-term market structures. After a firm confirms that they must…

Reviewing FX Risk Programs of 2022 By Matt Dawydiak, Ritwik Sarkar Dec 15, 2022 2022 has not ceased to let up on market participants with multiple headwinds. Corporations have shifted from treating FX and interest rate volatility as an afterthought, to active boardroom discussions. Fortune 500 companies have had to emphasize constant-currency metrics to…

Evolving Your Risk Management Approach By Matt Dawydiak, Ritwik Sarkar Jun 09, 2022 After two years of pandemic induced disruptions and elevated inflationary pressures that followed, organizations are continuing to struggle with FX. The fallout from this period indicated that while some have a relatively robust approach to FX, the changing dynamics mean some…

Window Forwards: A Simple Tool in Uncertain Times By Matt Dawydiak, Ritwik Sarkar Jul 07, 2021 As payment uncertainties persist well into the first half of 2021, treasury teams have been evaluating flexible strategies as supply chain disruptions continue. From semiconductor backlogs to rising commodity prices due to supply side bottlenecks, the reopening still brings…

A Treasurer’s Approach to Risk By Matt Dawydiak, Ritwik Sarkar Dec 08, 2021 What is VaR Measure? Value at risk is a statistic that builds a series of probabilities of financial outcomes over a specific timeframe time period. V is the Value at risk within the fx exposure. The time horizon (N days) and the…

Combatting the ‘Fear of the Unknown’ By Klarity FX Desk Dec 05, 2021 Risk factors, and risk situations have manifested themselves as both supply- and demand-driven shocks to the global economy. Executives and treasury team are therefore grappling with the ‘Fear of the Unknown’. A strong risk management framework can help companies stay on…

Cost of FX Hedging By Matt Dawydiak Feb 18, 2021 Hedging costs have been largely viewed by Multinational corporations, as ‘too expensive’ or ‘complex’. Management prefers to control their exposures largely through spot transactions or through passive forward contract management. Upon further understanding of…

Take Control of Your FX Budget By Ritwik Sarkar Aug 25, 2020 4 MIN READ When using any type of FX forecast, the simple reality is that the future is unpredictable and surprises happen. Hedge strategies that are constructed upon a market view will not consistently minimize a company’s FX risk, but instead are likely…

Minimize Uncertainty- A Practical Guide to FX Hedging’ By Klarity FX Desk Dec 05, 2021 4 MIN READ Companies hoping to limit impact of FX volatility on their operations, first have to ask if they had done the appropriate groundwork. Executives rely on Treasurers, CFOs, and Controllers to provide the answers, but with little…

Navigating Corporate FX Programs as Disinflation Tilts Forward

So you’ve Decided to Hedge, but How much?

Reviewing your FX Program of 2022

Evolving Your Risk Management Approach

Treasury Flexibility with Window Forwards

A Treasurer’s Approach to Risk

Combating the Fear of the Unknown

Cost of FX Hedging

Take Control of Your FX Budget

Minimize Uncertainty – A Practical Guide for FX Hedging